Momentum Trader Report: 04/30/08

Fed Cuts Rate by 25 bp

Today was the bug FOMC announcement, and as expected, the Fed cut the interest rate by 25 bp. The market rallied into the announcement, and then traders sold the news. Supposedly the Fed didn’t make as strong of a statement against inflation as the market had hoped, but did indicate that this may be the last of the rate cuts, at least for awhile.

I removed SID and ITU from the Watchlist last night, since I didn’t plan to trade today. However, ITU made a huge run at the end of the day, blasting through the buy point I had posted of 27. I have no idea why.

This was the last trading day of April, and it has been a great month for the market, and for many of the stocks posted here. I started the month day trading, or sometimes holding overnight. It soon became clear though, that this was going to be a month where winners had to be held longer. There were some great runners that were picked here. Like HK, CLF, FLSR, PBT and BIDU, just to name a few. I hope you caught some of them. I will be putting some charts of some of the best performers in the Past Performance section later this week.

Now we enter May, and you know what they say, “Sell in May and go away”. Looking at charts tonight, that seems like good advice right now, because it looks like the market could take a bit of a tumble here. A lot of the high flyers of April are looking haggard. Some of these stocks have already broken down considerably, like NEU and POT. If a sector rotation is in the process, then some of the big movers could make good short candidates. Here’s are few I am looking at, but not placing on the official Watchlist. These are just some stocks to watch, no entries provided.

Possible Short Candidates to Watch

I didn’t find many stocks to consider for tomorrow. The two here will need to show some above average volume to be considered.

Trade Ideas for 05/01/08:

Also consider BZP. The chart is posted above as a possible short candidate. It’s sitting on the 50 MA and can move either way.

Good luck and good trading!